The second tranche of investment, amounting to up to €680 million, is expected around May 2022 upon closing of AM InvestCo’s purchase of Ilva’s business.
SEATTLE (Scrap Monster): Integrated steelmaker ArcelorMittal announced that it has reached a binding agreement with the Italian state-owned Invitalia. The two parties have formed a public-private partnership, in order to recapitalize AM InvestCo- ArcelorMittal’s Italian subsidiary.
According to the agreement, Invitalia will invest in AM InvestCo in two slices. The initial investment of €400 million is expected by end-January next year, subject to EU antitrust approval. The first phase of investment will provide Invitalia with joint control over AM InvestCo.
The second tranche of investment, amounting to up to €680 million, is expected around May 2022 upon closing of AM InvestCo’s purchase of Ilva’s business. This should bring Invitalia’s shareholding in AM InvestCo to 60%. Also, ArcelorMittal will invest up to €70 million, so as to retain 40% shareholding and joint control over the company.
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The proposed investment includes construction of two electric arc furnaces (EAFs) and a direct reduced iron (DRI) plant, along with the reconstruction of blast furnace No.5, as part of promoting lower-carbon steelmaking technologies. The plan targets to lift the production to nearly 8 million tonnes per annum by 2025.
The new 50:50 joint venture’s long-term objective is to create Europe’s largest plant for green steel.
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